Question
Use the following information when answering questions 1 and 2: It is 01 January and with the current financing, profit after tax in listed Amfi
Use the following information when answering questions 1 and 2: It is 01 January and with the current financing, profit after tax in listed Amfi ASA is expected to be 4.5 million at the end of each year in the foreseeable future (read: eternity). The company's tax rate is 35% and the interest rate on debt is 8%.
question 1
How much interest deduction can Amfi claim at most at the end of the year without losing the interest tax benefit? Enter the amount in millions with two decimal places, e.g. 3.45.
question 2
How much can Amfi issue as a perpetual debt on January 2 without losing the interest tax benefit? Enter the amount in millions with two decimal places, e.g. 4.56.
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